There cannot be a standard one size fit all answer to all these companies. Its specific to each company. I can share my views about RACL . Auto ancillary companies are always dependent for their sales and price on big OEMs while.on raw material supply side they are dependent on big metal companies . So from both sides they are squizzed and hence not in a great position to expand their Profitability. So I sold it within weeks of realising this mistake. Since business model itself has no moat, I would.never care about its valuations. First business then valuations. Always.
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